Full-cycle Wisconsin payroll workflow covering employee withholding setup (Form WT-4), periodic deposit reporting (Form WT-6), annual reconciliation (Form WT-7), UI wage reporting (UCT-101/UCT-7823), reciprocal-state elections (Form W-220), and worker classification checks under Wisconsin's strict 9-factor UI test.
Register the business with Wisconsin DOR for income tax withholding and with DWD for UI before the first payroll runs. Confirm deposit frequency assignment and e-file access via My Tax Account. Verify workers' compensation coverage is in place (required for most employers with 3+ workers under Wis. Stat. § 102.04).
Collect Form WT-4 from every new hire on or before the first day of work. Wisconsin did not adopt the 2020 federal W-4 redesign — the allowance-based WT-4 is required separately from federal Form W-4. Each allowance reduces annual taxable wages by $700. If no WT-4 is received, withhold as single with zero allowances. Submit a copy to DOR within 20 days if the employee claims more than 10 allowances or claims full exemption.
Before adding any non-W-2 worker, apply Wisconsin's two-step UI classification test under Wis. Stat. § 108.02(12)(bm): the worker must be free from control (Part A) AND satisfy 6 of 9 Part B conditions. This test is materially stricter than the IRS common-law test — a federal 1099 contractor may still be a Wisconsin UI employee. Also run the separate 9-factor workers' compensation test under Wis. Stat. § 102.07(8). Document both analyses before processing any contractor payments.
Run each payroll period using the wage-bracket or percentage method from DOR Pub 166 to compute Wisconsin PIT withholding. Apply the 7.65% flat supplemental rate to separately identified bonus, commission, or severance payments. File Form WT-6 electronically via My Tax Account by the frequency-assigned due date. Semi-monthly filers: wages paid 1st–15th due by month-end; wages paid 16th–end of month due by the 15th of the following month.
Each calendar quarter, report Wisconsin UI wages and contributions on Form UCT-101 (employer summary) and Form UCT-7823 (per-employee wage detail) through the DWD online portal. The 2025 UI taxable wage base is $14,000 per employee. New employers pay 3.05% (non-construction) or 2.90% (construction) for the first 3 years. Experienced employers use the Schedule D experience-rated table. Due dates: Q1 April 30, Q2 July 31, Q3 October 31, Q4 January 31.
By January 31, issue W-2 forms to all employees and file Form WT-7 (annual reconciliation) along with W-2 Copy 1 data electronically through DOR's WT-7 e-file system. WT-7 reconciles total Wisconsin income tax withheld per WT-6 deposits against the sum of Box 17 on all W-2s. Pay attention to the most common reconciliation errors: bonus accrual mismatches (Wisconsin uses cash-basis — report in year of payment), reciprocal-state W-2 Box 16/17 formatting, and any sign-on bonus clawbacks.
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